A Debt to Equity Ratio of 50% Indicates That

question 25

Multiple Choice

A debt to equity ratio of 50% indicates that

• A)half of the company's assets are financed through equity.
• B)50% of the company's interest expense comes from long-term debt financing.
• C)the company is close to bankruptcy.
• D)the company spends 50% of its operating earnings on interest.

---

Definitions:

Ethical Guidelines

Principles designed to guide behaviors and decision-making processes that respect the rights and dignity of all individuals involved in a particular context.

Experimental Methodology

A research method involving the manipulation of variables to test hypotheses and observe effects in controlled conditions.

Ethnocentrism

The act of judging another culture solely by the values and standards of one's own culture, often leading to biased perceptions.

Biased Sample

A sample that does not accurately represent the population from which it's drawn, often due to a selection process that favors certain characteristics.